Tesla pushes LG Chem to No. 2 in Chinese EV battery market

LG Chem ranked second in the Chinese electric vehicle battery market for the January-March period this year, according to industry data.

Market tracker the China Battery Enterprise Alliance said Thursday that LG Chem supplied EV batteries in China with a combined capacity of 2,087 megawatt-hours, surpassing local competitor BYD’s 1,943 megawatt-hours. Another local competitor, CATL, was in first place with 6,173 megawatt-hours.

“LG Chem equipped 39,393 Tesla Model 3s built in Shanghai with its batteries,” a CBEA official said. The arrival of LG Chem has destabilized BYD, which had long held the No. 2 position in the market, the official added.

In May, Tesla Model 3 sales broke the 10,000 mark in China, recording 11,095 vehicles, a 205 percent increase from the previous month, according to the CBEA official.

Tesla aims to produce 150,000 Model 3 sedans at its Shanghai factory this year.

This is not the first time LG Chem benefited from Tesla’s strong sales. In the first quarter, LG Chem supplied 14 percent of the batteries for 88,461 Tesla EVs globally. Propelled by Tesla’s strong sales, LG Chem supplied EV batteries with a total storage capacity of 6.3 gigawatt-hours, topping the global battery market for the period.

By Kim Byung-wook (kbw@heraldcorp.com)